On June 9 EST, photovoltaic enterprise Yingli Green Energy Holding Co., Ltd. ("Yingli") (OTC Pink: YGEHY) announced that Baoding Municipal Intermediate People's Court has officially accepted the restructuring application of its subsidiary in China, namely, Yingli Energy (China) Co., Ltd.
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This means that the debt restructuring efforts over the last five years have officially entered the judicial restructuring phase. An administrator has been appointed to oversee the restructuring work, and it is expected that in the following months, a restructuring implementation plan will be formulated and binding through judicial decision. According to legal professionals, the initiation of the judicial process is essential to facilitate the effective implementation of the restructuring plan.
"With the joint efforts of relevant departments and major creditor banks, the direction and specific plans for the restructuring have been basically determined," said Yiyu Wang, CFO of Yingli Green Energy. Pre-restructuring stage tasks have been completed, such as the assessment, auditing, and the formulation and improvement of the restructuring plan. Creditors have reached a consensus that the restructuring plan will follow the principles of marketization and rule of law. The core contents of the restructuring plan include the conversion of a significant portion of the financial debts of Yingli's major PRC subsidiaries into controlling equity interests in the subsidiaries, full and orderly repayment of parts of financial debts and other payables, and fund injection of third-party platforms. Besides, there is a good chance that strategic investors will soon be introduced to further improve assets and cash position and enhance competitive advantages.
In order to promote a smooth restructuring, Yingli will actively cooperate with the court and the administrator in accordance with the law, fulfill its obligations, protect the legitimate rights and interests of all parties and communicate with related parties. Meanwhile, Yingli will also maintain regular production and operations and continue to undertake the existing orders and warranties of the subject of restructuring. The performance of labor contracts and salaries and benefits of employee will not be affected, and the legal rights and interests of suppliers and customers will be protected.
It is expected that after entering the restructuring period, Yingli will focus on the implementation of the restructuring plan, as well as the innovation of its business operations model, the optimization of capacity distribution, the upgrading of facility production lines, and the release of advanced technology reserves. The newly restructured Yingli will return to healthy development as its debt ratio is expected to drop to a medium or low level in the industry, and its cash flow will be greatly improved. Additionally, technological leadership and product competitiveness will be further enhanced to improve the stability and competitiveness of the industrial supply chain.
View the source version on PR Newswire:
https://www.prnewswire.com/news-releases/yingli-has-officially-entered-the-judicial-restructuring-process-301073349.html
